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Options and Benchmarking for the Proposed Department of Investment Zones of the National Investment Commission
Second Meeting of the Working Group on Investment Zones in Iraq 23-24 November 2011, Istanbul
Christelle Monteillet
Iraq Project Advisor, MENA-OECD Investment Programme
• Institutional and Governance Framework
• Overall strategy and objectives
• Human Resources
• Functions and staffing of investment services departments
• Structure and Staffing of Investment Zones Department, NIC
Overview
• Significant role of IPA in facilitating FDI inflows
• The effectiveness of an IPA depends on:
– Clear strategy and objectives
– Institutional structure
– Human resources
• Success of the future Department of Investment Zones relies on its integration into the NIC mission and structure:
– Advocacy and drafting of the country’s national investment policy and guidelines
– Monitoring their implementation
Investment Promotion Agencies (IPA)
• Singapore’s Economic Development Board (EDB):
– Promotion of investments
– Leading role throughout Singapore‘s rapid economic modernization and diversification process
• CzechInvest:
– Investment and Business Development Agency
– Assistance for domestic and foreign investments
• Tunisia’s Foreign Investment Promotion Agency:
– Support to investors
– Promotion of foreign investment in Tunisia
Investment Promotion Agencies (IPA)
• Success factors of IPAs:
– Clear legal status
– Operational autonomy with defined functions
– Powers necessary to carry out their mandates
– Direct reporting to the highest levels of government
– Integration with the private sector
• EDB:
– Established under the Ministry of Industry
– Board dominated by private sector representatives
– International Advisory Council chaired by Prime Minister’s Office with Presidents and CEOs from leading multinational corporations
Institutional and Governance Framework
• CzechInvest:
– Operates under the Ministry of Industry
– Steering Committee of 11 members (4 from the private sector) carefully chosen to promote consensus on the major role of FDI in the Czech Republic
• FIPA:
– Reports to the Minister of Development and International Cooperation
– Board of 11 members dominated by the public sector (7 out of 11)
– FIPA benefits from a close working relationship with its parent ministry and the leadership of its minister
Institutional and Governance Framework
• EDB: – Enhance Singapore's position as a global hub for business, investment
and talent
– Create sustainable economic growth through the expansion of business and job opportunities
– Position Singapore as a strategic business location for global companies and Asian enterprises
• CzechInvest: – Initial orientation towards multinational greenfield manufacturing
projects
– Repositioning by enhancing competitiveness, innovation and exports
– Major programs: network of regional offices and overseas offices, investor incentives, industrial zones, property development, and supplier development
Overall Strategy and Objectives
• FIPA:
– Objectives: • Define the Tunisia location as a product
• Differentiate Tunisia from its competition
• Focus the operation on serving an expanded potential client base of European and EU market-focused investors
– Target specific industries and companies and design an investment promotion plan for each targeted sector
– Launch studies to examine the cost structures of targeted products in a number of countries that competed with Tunisia for FDI
– Creation of a customer-focused operation
Overall Strategy and Objectives
• EDB:
– Selection of potential candidates at high school graduation and funding through university
– Hiring of more senior specialized skills direct from the labor market
– Salaries often higher than those offered by the civil service
• CzechInvest:
– 150 staff
– Selection of self-motivated, multilingual young staff backed by experienced foreign advisors
– Newly hired staff are delegated significant responsibility in terms of project management and product development
Human Resources
• FIPA:
– 66 employees in Tunis and 12 abroad
– Evaluation conducted every 3 months on work discipline, punctuality, efficiency, use of initiative, and communication skills
– Training on an individual basis on languages and computer skills
– Participation in training missions abroad and international development networks
Human Resources
Functions and staffing of investment
services departments
Source: USAID
• EDB:
– Organizational structure is industry based to provide end-to-end services to investors
– 6 departments oriented towards the development of innovation-intensive and corporate support activities, and structured on a sectoral basis
– Services offered: • Provision of sector-specific information
• One-stop-shop (OSS)
• Investment facilitation (including assistance with registration and permits, infrastructure and human resources)
• Facilitation of linkages with the local business community
Functions and staffing of investment
services departments
Source: EDB
Functions and staffing of investment
services departments
• CzechInvest:
– Organized in 5 departments
– Investment Projects Department is the principal arm responsible for facilitating investments
– Services offered: • Provision of investment environment and sector information
• Tailor-made visits to the Czech Republic
• Handling of investment incentives
• Business property identification, supplier and joint venture partner identification
• Liaising with government and municipal bodies, investors
• Aftercare activities: assistance with supplier selection, identification of location, mediation with government bodies
Functions and staffing of investment
services departments
Functions and staffing of investment
services departments
• FIPA:
– Organizational structure comprises technical and administrative divisions
– Transition from general promotion of Tunisia to sector-based targeting and outreach in 2000
– Dedicated customer care by assigning single points of contact within the agency:
• Investment officers assist investors until implementation of investment projects
• Follow-up and Assistance Division interacts with other government agencies in resolving investor problems
• Formal channels address installed investors’ problems
Functions and staffing of investment
services departments
Source: Competing for FDI
Functions and staffing of investment
services departments
• NIC:
– Administrative oversight by the Council of Ministers
– Led by a chairman nominated by the Council of Ministers for 5 years
– Board of Directors composed of 9 members dominated by private sector representatives (6 out of 9)
– Draft Iraqi investment zones regulation provides for the creation of a Department of Investment Zones (DIZ)
Structure and Staffing of Investment Zones Department, NIC
• Duties of the Department of Investment Zones:
– Formulation and implementation of the Iraq investment zones strategy, including proposing sites for development in coordination with relevant authorities
– Recommending to NIC Chairman that zone developer licenses be issued once applicant has met all requirements
– Submission of periodic reports on investment zone activity to the Chairman of the NIC
– Banning all activities within each zone that conflict with public order or intellectual property rights, or threaten the environment
– Any other duties assigned by the Chairman of the NIC
Structure and Staffing of Investment Zones Department, NIC
• Points for clarification:
– Human resources needed: • NIC employees: knowledge of the investment zones programme
• Other ministries’ personnel: network of contacts
• Private sector staff: business perspective
– Processes managed by the DIZ: • Different steps to be followed
• Deadlines
• Documents to furnish
• Decision criteria and options for appeal
• Automatic approval of certain filings or requests
• Notification of rejection within a predetermined timeframe
• On-line procedures
Structure and Staffing of Investment Zones Department, NIC